A new OECD report is calling for stronger supply chain traceability to help critical mineral-producing and consuming countries improve resilience, attract investment and strengthen responsible sourcing and governance.
The report, Enhancing Resilience through Traceability: Insights from Lithium and Nickel Supply Chains in Latin America and Southeast Asia, comes as demand for lithium, nickel and other critical minerals surges. These resources are vital to national defence, digital technologies and the global shift to renewable energy.
Yet investment in the sector is failing to keep pace, with operational and governance risks continuing to weigh on the industry.
Supporting the G7 Critical Minerals Action Plan, the report draws on an OECD-IEA survey of 90 leading companies across critical mineral value chains, alongside stakeholder interviews and field research in Argentina, Chile, Indonesia and the Philippines.
The findings point to rapidly growing business interest in traceability, but also highlight major hurdles to scaling it across borders.
Private-sector investment is accelerating: Nearly three-quarters of surveyed companies plan to increase investment in traceability systems.
Supply chain visibility is improving: Companies are increasingly using supply chain mapping, audits and mass-balance approaches to improve transparency, even when full end-to-end traceability remains difficult.
Customer pressure is driving change: More than 60% of respondents identify brand reputation and customer expectations as key motivations for adopting traceability systems, with regulatory compliance close behind.
Cost and technology remain major barriers: More than half of surveyed companies cite implementation costs and a lack of interoperability between systems as key obstacles. Concerns over confidentiality, supplier leverage and data quality are also slowing progress.
Businesses want greater regulatory alignment: Half of respondents identify regulatory consistency as the top priority for scaling traceability, while many also call for shared data infrastructure.
The OECD report sets out a policy roadmap for governments, outlining where traceability can deliver the greatest value and how policymakers can implement measures effectively.
With demand for critical minerals expected to remain strong, the report argues that greater transparency across supply chains can help countries manage risks while supporting investment, responsible sourcing and better governance.
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